November 4, 2025 | 05:35 pm
TEMPO.CO, Jakarta - Coordinating Minister for Economic Affairs Airlangga Hartarto said the recent rise in global gold prices, which helped drive Indonesia’s 2.86 percent annual inflation in October 2025, is a positive signal for the economy.
He noted that the surge aligns with international market trends, as gold prices have climbed to record highs amid global economic uncertainty, geopolitical tensions, and investor demand for safe-haven assets.
“This is actually a relatively positive development because people are now seeking quality assets, and this is also the result of establishing a bullion bank,” Airlangga said at the CEO Insight event held at Plataran Senayan, Jakarta, on Tuesday, November 4, 2025.
Airlangga explained that since the government established Indonesia’s first bullion bank in February 2025, public awareness and participation in gold investment have significantly increased.
He said this behavioral shift reflects a growing financial maturity among Indonesians, who are beginning to favor stable, long-term investment instruments.
He added that the imbalance between global gold supply and demand has been another key factor pushing prices to all-time highs, prompting domestic gold refineries to ramp up production to meet market needs.
Data from the Central Statistics Agency (BPS) showed that Indonesia’s inflation in October 2025 rose 0.28 percent month-to-month, lifting the Consumer Price Index (CPI) from 108.74 in September to 109.04 in October.
BPS Deputy for Distribution and Service Statistics Pudji Ismartini said that jewelry gold was the largest contributor to inflation that month, accounting for 0.21 percent of the total. Other commodities driving inflation included red chilies (0.06 percent), chicken eggs (0.04 percent), and chicken meat (0.02 percent).
“October’s inflation was mainly driven by the personal care and other services category, which saw 3.05 percent inflation and contributed 0.21 percent overall,” Pudji said during a press briefing in Jakarta on Monday, November 3, 2025.
On an annual basis, inflation reached 2.86 percent year-on-year, while year-to-date inflation stood at 2.10 percent. Several food commodities helped ease price pressures, including shallots and bird’s eye chilies (each -0.03 percent), along with tomatoes, rice, yardlong beans, and green chilies (each -0.01 percent).
In terms of inflation components, core inflation recorded the highest increase at 0.39 percent, with a 0.25 percent contribution, mainly driven by higher jewelry gold prices and university tuition fees.
Government-regulated prices rose 0.10 percent (0.02 percent contribution), driven by increases in cigarette prices and airfares.
Meanwhile, volatile prices increased 0.03 percent (0.01 percent contribution), due to higher prices of red chilies, chicken eggs, and chicken meat.
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